Biggest Changes to Housing Sector in over 30 Years!

Speaking with other Estate agents it seems we are all gearing up for what looks like a busy year ahead. Mortgage rates are slowing coming done thereby increasing affordability and in addition lenders have been advised to relax lending rules in a move to stimulate the economy. Couple this with the Stamp Duty deadline, which expires in April 2025, is putting pressure on buyers who are sitting on the fence to make show their hands before they miss the boat. History has taught us that when confidence returns to the housing market in a strong economy, the volume of activity increases.

Property Mark CEO, Nathan Emerson, recently said "the entire housing sector is about to embark on some of the biggest changes seen in over thirty years with new planning reform for England and Wales working its way through parliament, which will pave the way for the UK government to start delivering their ambition of over 1.5m new homes before 2029."

He also added that “"the lettings market remains extremely challenging, with long-running issues regarding an intense lack of rental stock across the UK. Throughout the last twenty years, we have seen renting more than double in popularity and there needs sensible support that encourages long-term investment within the sector.”

“Similarly significant legislation that will impact the lettings market across England is also moving at pace through Westminster in the form of the Righters’ Rights Bill. This will fundamentally change key rights for both renters and landlords and it remains imperative that this new Bill strikes a workable and fair balance for all involved.”

With legislation changes on the horizon we anticipate some landlords will sell some (or all) of their portfolio which make create a bouyant sales market on one hand. On the other hand this will continue to deplete the lettings stock which in turn will force prices upwards without doubt. Long term property investors who adapt to the new changes and hang on to their portfolio will start to see their yields increase. Tenants will be the ones paying the ultimate price, quite literally, and will be the hardest hit.

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